NEW YORK (Reuters) - Qtrax, a new free music download service, backed off claims that it has deals with all four major music companies after Warner Music Group denied it had agreed terms with the start-up.

"Warner Music Group has not authorized the use of our content on Qtrax's recently announced service," Warner, the No. 3 music company, said in statement late on Sunday.

Qtrax said late on Sunday, "We are in discussion with Warner Music Group to ensure that the service is licensed and we hope to reach an agreement shortly."

A source close to Universal Music Group, the world's largest music company, told Reuters it also did not have a deal with Qtrax but discussions were continuing.

The Los Angeles Times also reported on Sunday that EMI Group executives said it had not agreed terms with Qtrax.

Sony BMG Music Entertainment, the second largest music company, was not immediately available.

Qtrax Chief Executive Allan Klepfisz told Reuters and other media outlets last week that it had deals with the major labels representing about 75 percent of all music sales to allow users to download songs through Qtrax for free.

Qtrax had said the new service would be supported by advertising revenue and planned to launch on Monday with around 25 million to 30 million copyrighted tracks.

(Reporting by Yinka Adegoke; Editing by Derek Caney)

© Copyright 2007 Reuters.

Photo:
Screengrab of www.qtrax.com on January 28, 2008. Qtrax, a new free music download service, backed off claims that it has deals with all four major music companies after Warner Music Group denied it had agreed terms with the start-up. REUTERS/ Screengrab/www.qtrax.com